Tony Elumelu’s HH Capital Limited has obtained the necessary approvals from the Securities and Exchange Commission of Nigeria to make a mandatory tender offer for shares of Transnational Corporation Plc (NGX: TRANSCORP).
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In a regulatory filing signed by Transcorp’s Group Company Secretary Atihuke Kolade, the company informed the Nigerian Exchange Limited and the general public of the approval.
HH Capital’s will make the tender offer of up to 2,032,399 fully paid and issued ordinary shares equivalent to 0.02% of the issued and fully paid shares in Transcorp to other shareholders.
The offer will be at a 0.25% premium to the opening price of the ordinary shares of Transcorp as of the opening date, for each unit of ordinary shares tendered.
On April 28, 2023, HH Capital Limited purchased 1,493,477,786 (One Billion, Four Hundred and Ninety-Three Million, Four Hundred and
Seventy-Seven Thousand, Seven Hundred and Eighty-Six) ordinary shares of Transnational Corporation Plc at a weighted average price of ₦3.12 (Three Naira, Twelve Kobo) per share. This transaction increased the direct and indirect cumulative shareholdings of HH Capital (including shares held by Related Parties – Tony O. Elumelu CFR, Dr. (Mrs.) Awele Vivien Elumelu OFR and Heirs Holdings Limited) to 35.94% (Thirty-Five point Ninety-Four percent) of the share capital of Transcorp, hence triggering the mandatory tender offer provisions of the Investment and Securities Act, 2007 (as amended) and the Rules and Regulations of the Securities and Exchange Commission, 2013 (as amended).
Transnational Corporation Plc had in October announced the successful completion of its share reconstruction, a strategic action aimed at maximising long-term shareholders value.
The share reconstruction involved a consolidation of the total number of issued shares at a ratio of 1 to 4, reducing the total issued and fully paid shares of Transcorp Group from 40.6 billion shares to 10.2 billion shares. Whilst the number of shares reduced pro rata, the total value of shareholders’ investments remains unchanged with no dilutive impact to shareholders.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
